Texas AG Abbott resolves claims against BlueHippo

AUSTIN, Texas (Legal Newsline) - Texas Attorney General Greg Abbott announced an agreed judgment on Friday against a now-bankrupt Maryland telemarketer that allegedly engaged in the unlawful marketing of personal computers to low-income consumers.

Under the terms of the judgment, Joseph K. Rensin, the sole shareholder of the former BlueHippo computer sales operation, must pay $175,000 in restitution. Abbott alleged that Rensin violated the Texas Deceptive Trade Practices Act.

Texans who were defrauded by BlueHippo may collect reimbursement from the restitution fund established by the state of Texas.

"The BlueHippo firms violated state law when it took Texans' money and refused to deliver the computers or equipment customers purchased," Abbott said. "The state's investigation also showed that BlueHippo unlawfully refused to honor refund requests and withdrew payments from customers' bank accounts without their permission. Today's court order requires the defendants to pay $175,000 in restitution so that Texans who were defrauded by BlueHippo can seek reimbursement for financial losses they suffered because of the defendants' unlawful conduct."

The court also issued a permanent judgment that prohibits Rensin or his businesses from trying to collect approximately $2.3 million worth of debts incurred by Texans because of dealings with BlueHippo. The court barred Rensin and his businesses from reporting Texas customers' non-payment of debt to the nation's credit reporting agencies.

Abbott's office will administer the restitution fund created under the order. Texans who bought products from BlueHippo may be eligible for reimbursements if they submit a claim form within 90 days of the agreement.